BOI gives incentives to another coal power project

by Lenie LecturaAugust 20, 2016

from Business Mirror

THE coal-power project of Redondo Peninsula Energy Corp. (RP Energy) has been issued a certificate of registration by the Board of Investments (BOI), entitling the project to certain investment incentives.

“The BOI has just issued a certification that entitles RP Energy to duty-free importation of equipment, materials and spares for five years from date of registration. Also including four-year tax holiday from commercial operation,” RP Energy Project Development Manager Joselito Lantin said.

RP Energy is developing a 2×300- megawatt (MW) project on a phased basis. The engineering, procurement, construction (EPC) bids for the first 300-MW circulating fluidized bed (CFB) coal-fired power plant at the Subic Bay Freeport Zone in the province of Zambales have been received and evaluated.

RP Energy is a joint venture among Meralco PowerGen Corp., Aboitiz Power Corp. and Taiwan Cogeneration Corp.

“We are currently negotiating with preferred EPC contractor for the first  phase of the project. We will also include an option for the next phase, also a 300-MW unit,” Lantin said.

The target start of construction for Phase 1 is in the last quarter of this year, with expected commercial operation in late-2019 or early-2020, Lantin added.

RP Energy would sell the electricity generated from the proposed power project to Meralco and Aboitiz.

“For the off-take, it would be Meralco,” said Lantin, explaining that 225 MW of electricity to be generated from the power plant is covered under a separate power-supply agreement (PSA) with the distribution-utility company.

The remaining 75 MW would be sold to Aboitiz Energy Solutions Inc. (AESI). RP Energy signed PSAs with Meralco and AESI in April.

RP Energy also signed an amended power-plant site lease agreement and transmission line right-of-way (ROW) lease agreement with the Subic Bay Metropolitan Authority  in February last year. Recently, the Energy Regulatory Commission approved the transmission-line interconnection for the project. The line will be from the RPE site to Hermosa substation. Moreover, the ROWs  for the transmission line for Phase 1, or from RPE site to Hanjin, was secured.